Bangkok’s Top Property Developers Dominate the Condo Market
Top developers who are supplying high-end condominium units are dominating the Bangkok market. Luxury apartments in the capital were never as expensive as they are these days. In fact, they have hit a record high. This is based on the latest report of property consultants CBRE Thailand. In this report, they have noted that the remarkable price increases are observed among the high-end condominium market in the country’s capital. They speculate that the price hikes are due to the shortage of two-bedroom and three-bedroom apartments in Bangkok’s condo market.
Top Performing Projects Are Located Near Transit Stations
The top performers among many projects, in general, are those that are within the vicinity of mass transit stations. This is according to Aliwassa Pathnadabutr, the managing director of CBRE Thailand. Pathnadabutr further explained that the one-bedroom market is going to be put on the spot by developers. This is caused by the presence of unsold and shadow inventory arising from the units bought through speculative purchases. The buyers of the said units intend to resell these even before project completion. The report says that even the prices of entry level and middle level condo units have somewhat risen in recent times. But the price increases for these are far less compared to those of the luxury residential units. Because of this trend, the CBRE is optimistic that new launches will continue despite the slower rate of absorption in recent times as opposed to the market scenario two years ago. Back in those times, many units got sold out even while at project launch. Gauging by the turn of events in the last three months, Director Pathnadabutr says that top developers dominate the high-end segment of the market.
Developers Look for the Best Location
CBRE anticipates that developers will be seeking for the best location. It is on top of their priority, because these locations are in high demand. However, to ensure success, they have to achieve a balance between building apartments in profitable sites and buying land at the optimal prices. This is necessary so that the unit prices of apartments to be built will still be within the buyers’ maximum budget range.
A Required Balance between Affordable Pricing and Functionality
Pathnadabutr also noted that developers will have to decide if they should purchase lower cost land that are quite far from mass transit stations, or if they will size down the condo units to be built near the transit lines. It is essential that the developers seek balance between affordability and functionality, the managing director added. In conclusion, the report says that there are now more and more people in Bangkok who are receptive to the idea of condominium living. The demand for such type of property remained strong, it says. This is particularly true in areas close to mass transit stations and in densely populated parts of the city where there is limited supply, Homes Go Fast reports.